"Anora," a drama about a sex worker who elopes with the son of a Russian oligarch, took home five Academy Awards, including best picture and best director for Sean Baker.
First-time nominee Mikey Madison, who won best lead actress for her portrayal of a 23-year-old sex worker in New York, honored the sex worker community in her acceptance speech saying that she will "continue to support and be an ally."
Anora, which showcases Madison's character's struggles following an ill-fated romance, was made for just $6 million.
Baker, who picked up his first Oscar as best director added: "I want to thank the Academy for recognizing a truly independent film. This film was made on the blood, sweat and tears of incredible indie artists."
Oscars back at the Dolby Theatre after deadly fires
Comedian Conan O'Brien hosted the ceremony for the first time as it returned to the Dolby Theatre after the fires in Los Angeles in January.
A number of firefighters were welcomed onto the stage during the ceremony as they were applauded and thanked for their work to put the destructive wildfires.
Adrien Brody wins best actor for "The Brutalist"
Adrien Brody also clinched the best actor award for his portrayal in the three-and-a-half-hour film, which tells the story of Hungarian immigrant and Holocaust survivor László Tóth (Brody), who is trying to rebuild his life in post-war America through his work as an architect.
Brody reflected on his struggles for roles following his previous Oscar win in "The Pianist" saying: "Acting is a very fragile profession, it looks very glamorous and it is in certain moments but there's one thing I've learned... it is to have some perspective."
Latvian film 'Flow' won the Oscar for animated feature
The biggest upset early on came in the best-animated feature category. "Flow," the wordless Latvian film upset DreamWorks Animations' "The Wild Robot."
The win for Flow, an ecological parable about a cat in a flooded world, was the first Oscar ever for a Latvian film.
Kieran Culkin, Zoe Saldaña win best supporting actor and actress
Zoe Saldaña, a frontrunner throughout awards season, won best supporting actress for her portrayal of a lawyer called Rita in Netflix's "Emilia Perez."
The 46-year gave an emotional acceptance crying out "Mommy," to her mother in the audience.
"I am floored by this honor," she wept, becoming more emotional as she mentioned her family. "Everything brave, outrageous and good I've ever done in my life is because of you."
"My grandmother came to this country in 1961 - I am a proud child of immigrant parents with dreams and dignity and hardworking hands.
"I'm the first American of Dominican origin to accept an Academy Award and I know I won't be the last. Getting an award where I got to sing and speak in Spanish - this is for my grandmother."
Kieran Culkin won the first Oscar for the night for best supporting actor for his performance alongside Jesse Eisenberg in "A Real Pain."
Culkin played one of two cousins, opposite the film’s writer and director Eisenberg, who travel across Poland in remembrance of their grandmother, exploring their Jewish family heritage along the way.
Iranian filmmakers Shirin Sohani and Hossein Molayemi also earned their first Academy Award for animated short film for "In the Shadow of the Cypress."
It was the second Iranian animated or live-action short film nominated at the Oscars and the first to win.
The filmmakers arrived in the US only a few hours before the ceremony and had to change into their outfits in the public restroom at BBC's LA office across the road from where they received their award. Their film has no dialogue and is about a former captain who is suffering from PTSD.
